School property maintenance funding to increase in 2026

Schools will receive a significant increase in maintenance funding from mid-2026, with the Government announcing the first rise to base rates since 2010 

From 1 July 2026, schools will get more money for property upgrades under the Five Year Agreement (5YA) funding system which has not been updated since 2010. 5YA funding sets budgets for building improvements over a 5-year period, supporting upgrades, modernising or replacement works on existing buildings. 

The standard funding rate will increase from $30/m² to $45/m², and the minimum amount small schools receive will double from $45,000 to $90,000.  

Approximately 450 schools will receive increased allocations in the first tranche from July 2026. The doubled minimum allocation is expected to have the greatest impact on smaller schools, with 24 schools set to receive twice their current funding in the first year. 

Education Minister Erica Stanford said the funding increase would give schools more certainty and flexibility to plan long-term projects.  

“We’re providing schools with greater certainty and flexibility to plan effectively. This investment will support them to plan and deliver larger essential upgrades and modernisation over the long term.”  

Maintenance funding builds on earlier investment 

The latest funding increase builds on a $431 million infrastructure package to upgrade existing school infrastructure, previously reported on by Under Construction. This included a $58 million injection to fast-track minor maintenance projects across more than 2,400 schools. 

Stanford said the initiative has been well received. 

“We’ve had overwhelmingly positive feedback from principals and boards who can finally tackle those day-to-day tasks like painting buildings, fixing windows and doors, and trimming old trees over summer.” 

School property management restructure to boost delivery 

Funding increases also follow a major structural reform of school property management, with the Government confirming the formation of the New Zealand School Property Agency (NZSPA).  

Expected to launch in 2026, NZSPA will take over responsibility for planning, delivering and maintaining school infrastructure nationwide. The change responds to a Government Inquiry, which found the Ministry of Education’s existing processes were outdated, leaving schools to navigate inefficient project planning and delivery systems. 

“With the establishment of the NZSPA, schools can expect improved project delivery and communication, better value for money, and an increased level of transparency around decision making,” said Stanford.